Texas Inc company has the following information:

Total Assets	8,000,000
Debt-to-Total Capital Ratio	60.0%
Cost of Debt	5.0%
Cost of Equity	8.5%
Tax Rate	21.0%
EBIT	500,000

a-What is the net income?

b-The equity approach to calculating residual income uses the following formula: RI = E rB Using this approach, what is the residual income?

c-The firm approach to calculating residual income uses the following formulas: NOPAT = EBIT (1 T) RI = NOPAT Total Capital WACC What is the weighted average cost of capital (WACC)?

d-The firm approach to calculating residual income uses the following formulas: NOPAT = EBIT (1 T) RI = NOPAT Total Capital WACC Using this approach, what is the residual income?